Why Do Marketers Use Direct Mail?
Are flyers and brochures stacking up in your mailroom? Is your inbox a wall of catalogs and samplers? Don’t blame Madison Avenue. Before Gutenberg and his printing press got up and running, Direct Mail was already in use all the way back in ancient Egypt!
Whether it be email marketing, marketing calls, a salesperson in reception, or the latest glossy postcard in the mailbox, the attention-getting business has been going full steam for hundreds of years.
Direct mail, or print mail, has a long history. Direct mailing is the best-known form of direct marketing, involving addressing a specific target group with an individualized mailing. Direct marketing is an important part of your lead generation process.
Direct mail as we know it today began in the late 19th century with the development of the postal service. Sears Roebuck is credited with pioneering this approach in the United States with its 1896 catalog. The 500-page mailing was sent to more than 300,000 homes -- and that before delivery vans.
The evolution of direct mail reflects the evolution of marketing as a whole. We're constantly adapting to new technologies and consumer preferences in order to reach our target audience.
“Should You Use Direct Mail? Yes. Direct mail can be an effective partner for your digital ads. We have a sort of blindness to the ads we see on TV and have carried that over to our internet experiences.” Andrews Wharton
Why is Direct Mail Good for My Marketing?
Direct mail is sometimes derided as "snail mail," yet this classic marketing method still has its justification: direct mail reaches customers who are not reached by email or digital advertising. Additionally, direct mail plays an important role in customer relationship management.
When sending direct mail, recipients don’t have to be asked for an "opt-in" as is the case with email marketing.
The primary advantage of mailbox advertising is that it is initially assumed that the recipient agrees to receive it. At least until he or she has not objected to the delivery and thus to the consent. In this way, more potential customers can be reached.
Open rates are much higher with direct mail than with email. They are almost 90%. By comparison, Mailchimp estimates the open rate for email marketing at 23%.
Studies have shown that direct mailings have a positive psychological effect, too. Consumers are more likely to see a well-designed print mailing with an offer or discount as a gift than as a nuisance. In other words, direct mail is an added value.
“A recent study found that only 44% of people could recall a brand directly after seeing a digital ad. Whereas 75% could directly after receiving direct mail. The physical nature of direct mail drives long-term memory encoding.” Aquatint
What Are the Advantages and Disadvantages of Direct Mail?
Depending on your customer and your product, one medium will be more effective than another. A senior citizen looking to buy a new Mercedes will likely prefer a glossy magazine and a printed invitation for a test drive. A younger customer looking to get a pizza in connection with an AirBnB booking likely responds better to a push notification on WhatsApp.
The marketing medium should fit the message -- and the recipient.
Advantage Email: There is no doubt that the acquisition costs for print mailings are higher than for many other forms of advertising. On top of this are the printing and postage costs.
Advantage Email: As we think more about the environment and a paperless workplace, emails are perhaps more environmentally friendly. They have the advantage of using fewer trees, no ink or toner, requiring no delivery, and they take up less space than paper products.
Advantage Direct Mail: We all know that print products are retained longer than email. How often have you held a mailing back for later inspection? On average we keep direct mail for more than 2 weeks before it goes into the bin. Compare that with digital advertisements that are usually only seen by customers for a few seconds.
Advantage Direct Mail: Direct mail has a very good response rate - as high as 37% thus offering a high and reliable return on investment. Your results may vary, of course, but the average is about 3%.
“Also, direct mail tends to have a longer shelf life than email or digital marketing. According to the Postary (Postcard Marketing & Direct Mail Platform), the average response rate of the direct mail is around 2.7% - 4.4%, while the email has around 0.6%, which is comparatively very low.” TBRC Business Research Pvt Ltd.
Why is Direct Mail Better Than Email for My Marketing?
Today, direct mail is not just about attracting new customers with short-term offers. Direct mail is about retaining existing customers. Today, customer relationship management is the brains behind direct mail. And why is that? Because the cost of acquiring a new customer is so much higher than retaining an existing one. It's all about recognising the value of your customers on their journey.
“As our digital footprint hits overdrive and Zoom fatigue kicks in, Americans are craving experiences outside of their computer screens. Direct mail marketing continues to deliver a personal and tangible alternative for customers suffering from screen overload, which will be more important than ever as the country slowly returns to normal.” Forbes.com
Which direct mail formats and campaigns work best?
In terms of content and format, your direct mail should follow the general rules of classic advertising rather than email marketing. Here are the most important points:
High-quality materials and content
Clear message
Strong incentives / real added value
Actionable item
The underlying message should appear in your other marketing channels, too. It’s more likely to be remembered and the conversion rate may be further increased.
Greeting after the first purchase
After the first purchase, customers are most receptive to learning more about your company.
It’s all about recognizing new customers and building a relationship with them.
Personalized events such as birthdays
A very simple incentive and recognition of a special day for customers is a birthday greeting including a rebate coupon. This builds goodwill and loyalty. It’s also a nice surprise on their special day!
Rewarding customer loyalty
Reward customer trust with a small thank you. A discount code, a gift, or the offer of a premium service, when a certain number of orders have been placed or a certain amount spent.
Referral marketing campaign
Mailings with discount code vouchers for the referrers and the people being referred help to build a new customer base among the friends of existing customers. This type of mailing is extremely effective as the mailing is handed from person to person.
Shopping cart abandonment
If a customer hasn’t responded to an email, a direct mailing can help nudge their attention.
Adding a QR code directly linking to their shopping basket is a master stroke.
Reactivating old customers
If a customer hasn't ordered for a long time, it may be time to offer them a little incentive. Personalize their direct mail with images and product offers based on their purchase history.
The cost of a mailing is many times less than the cost of acquiring a new customer!
“If you send an email to someone who’s no longer at a particular company, it bounces. If you send a postcard, the new person in that job sees it – and you’ve just introduced yourself as a vendor.” Xerox
Launch Your Next Direct Mail Campaign with AWI
Direct mail is far from extinct. As part of a comprehensive omnichannel marketing strategy, direct mail helps you reach and build relationships with your specific customer groups.
Mass mailings are a thing of the past because personalization can ensure that the content you send is relevant and specific to the recipient.
The future of direct mail lies in personalization and automation. Thanks to automated processes, you can save time and set up your system so that target groups receive personalized mailings on specific occasions.
Manual processes and transfers based on CSV files are cumbersome for everyone involved. The most successful brands connect their e-commerce platforms with their direct mailing system or provider.
With demanding audiences and data-driven project requirements, Andrews Wharton is a proven direct-response solutions provider. We have a long-standing reputation for solving the toughest marketing challenges.
Success. Delivered.
